Quality control and the sales process

Hau L. Lee and Charles S. Tapiero

Naval Research Logistics Quarterly, 1986, vol. 33, issue 4, 569-587

Abstract: Product quality is emerging as a major strategic instrument for competition. The purpose of this article is to assess the effects of quality control on sales, and, vice versa, the effects of the sales process on quality control. A model relating quality control and the sales process (advertising, repeat purchase, and word‐of‐mouth effects) is developed to evaluate the above relationships. Two special cases, with degenerate and beta distribution for defect items in the production lot, are analyzed in detail. In the former case, analytical results for the optimal quality control schemes are obtained, whereas in the latter, efficient bounds are derived to search for the optimal scheme. It is shown, analytically and numerically, that the sales parameters have significant impact on whether more “stringent” or “tighter” quality control is warranted. Future research directions are also discussed.

Date: 1986
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/nav.3800330404

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:navlog:v:33:y:1986:i:4:p:569-587

Access Statistics for this article

More articles in Naval Research Logistics Quarterly from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().